Streator lands $948,000 grant to upgrade Incubator, create ‘maker’s lab’

The vision is to take the Streator Incubator to a new level.

Now the city and the incubator’s board will have funds to begin meeting those goals.

The Department of Commerce’s Economic Development Administration awarded a $948,000 grant to the city of Streator to renovate the Incubator, formerly the armory at 401 W. Bridge St. This grant is funded by the American Rescue Plan.

The grant will allow for structural, HVAC and technology upgrades, along with the installation of a fire alarm system and parking improvements to attract high-growth start-ups and entrepreneurs throughout La Salle and Livingston counties, said the U.S. Economic Development Association in a Tuesday announcement.

Plans also may include installation of 3-D printing equipment, a DIY workshop, light manufacturing facilities and food preparation/packaging upgrades in an effort to create a “maker’s lab,” said City Manager David Plyman.

Designing the incubator to meet the needs of an entrepreneurial manufacturer makes Streator’s Incubator unique regionally, said Mayor Tara Bedei. A study was conducted about a year ago at the Incubator by the University of Illinois to determine which spaces needed to be renovated to accommodate entrepreneurs and developing businesses.

“A lot of incubators are set up as office space,” Bedei said. “The idea is to drive blue-collar manufacturing.”

“ ... This will give people the opportunity to do 3-D printing or use commercial kitchen space with no additional capital costs. Manufacturers will be able to do prototypes.”

Bedei said the chances of a large manufacturer choosing to open in town are small and the city has to be aggressive at fostering its own entrepreneurship. The Small Business Development Center is located at the Incubator and Streator and Woodland high schools have adopted a CEO program, giving high school students hands-on experience at starting their own businesses.

Another grant sought by the city aims to get funds to pay for a full-time manager, additional marketing and program development to promote the facility on a regional scale.

As for Tuesday’s grant award, Plyman said the next step will be to have conversations with the Incubator board and the City Council.

“The project may evolve within the confines of the grant and we’ll seek to do whatever meets the needs for our region,” Plyman said.

The EDA investment will be matched with $237,000 in local funds and is expected to create 50 jobs and generate $1 million in private investment, according to grantee estimates.

“The Economic Development Administration plays an important role in supporting locally-driven strategies designed to stimulate entrepreneurial activity,” said Assistant Secretary of Commerce for Economic Development Alejandra Y. Castillo in a statement. “This EDA project in Streator will deliver resources that small businesses need to thrive, bring new jobs to La Salle County and ensure that the region is resilient to future economic shocks.”

This project is funded under EDA’s American Rescue Plan Economic Adjustment Assistance program, which makes $500 million in Economic Adjustment Assistance grants available to American communities.

“This American Rescue Plan grant from the Economic Development Administration will go far in supporting Streator as it renovates the Streator Incubator building,” said Sen. Dick Durbin in a statement. “I look forward to seeing this federal financing play a significant role in helping bring new jobs to La Salle County and its small businesses thrive.”

The Economic Adjustment Assistance program is EDA’s most flexible program, and grants made under this program will help hundreds of communities across the nation plan, build and innovate through construction or non-construction projects designed to meet local needs.

“The Streator Incubator building is a significant hub for local small businesses and new start-ups,” said Sen. Tammy Duckworth. “By renovating and upgrading the building, the city of Streator can continue to draw in new local business, create jobs and expand economic development opportunities.”

Effective May 26, EDA has officially closed all of its American Rescue Plan programs for applications. The $3 billion program funding will be awarded on a rolling basis through Sept. 30.

The city owns the Incubatort and leases the property to the Streator Community Development Foundation, a 501(c)(3) non-profit entity that conducts fundraising to maintain the building, and oversees its secondary use as a community center. A portion of the Streator Incubator’s 23,000 square feet is leased to small business start-up companies. It also hosts the Illinois Small Business Development Center at Starved Rock Country once a week.